Interaction and quadratic effects in probit model with endogenous regressors

Xianbo Zhou and Heyang Li

Economics Letters, 2021, vol. 198, issue C

Abstract: This paper proposes a method to estimate the interaction and quadratic effects in probit model with endogenous regressors, which generalizes Ai and Norton (2003)’s study on the interaction effect in nonlinear model without endogenous regressors. The method is applied to estimate the interaction effect of the new-typed information tool usage and social network and the quadratic effect of age on the household risky assets investment, where the bootstrap standard errors of the two effects are provided.

Keywords: Endogenous probit model; Interaction effect; Quadratic effect; Bootstrap standard errors (search for similar items in EconPapers)
JEL-codes: C12 C25 C51 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:198:y:2021:i:c:s0165176520304559

DOI: 10.1016/j.econlet.2020.109695

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